Stock Market Today: S&P 500, Dow Futures Gain, Nasdaq 100  Falls as Iran Flags ‘Inadequate’ US Response to Peace Terms

U.S. stock futures were mixed on Monday, as the Dow Jones and S&P 500 indices rose, while the Nasdaq 100 index fell, following Friday’s higher close.

Geopolitical tensions flared over the weekend as Iran stepped up attacks on shipping near the Strait of Hormuz and threatened regional digital infrastructure, citing an “inadequate” U.S. response to its peace terms. The escalation comes amid reports that Tehran rejected Washington’s latest proposals to end the conflict, with prediction markets signaling low odds of a near-term diplomatic resolution to reopen the strategic waterway.

Attention on Wall Street is turning toward third-quarter earnings reports. Several major financial heavyweights—such as JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS), and Goldman Sachs Group Inc. (NYSE:GS)—are set to release their latest results this week.

The bond market is closed on Monday for Columbus Day, though the equity market remains open. Later this week, investors will digest September Consumer Price Index (CPI) inflation data, retail sales figures, and the Federal Reserve’s Beige Book.

Meanwhile, the 10-year Treasury bond yield stood at 5.24%, and the 2-year Treasury bond yield was at 4.79%, as of Friday’s close. The CME Group’s FedWatch tool projections show markets pricing in an 18.8% likelihood of the Federal Reserve hiking interest rates after its October meeting.

The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were mixed in premarket trading on Monday. The SPY rose by 0.063% to $779.06, while the QQQ declined 0.13% to $750.27.